TDFs are often black boxes, so many fiduciaries don't realize they do not have a rigorous conceptual basis — as demonstrated by the dramatic variation in the returns and asset allocations of funds with the same target date.

The willingness of an experienced plaintiffs' ERISA counsel to settle for “pocket change” in the Braden vs. Wal-Mart Stores Inc. case and the 7th U.S. Circuit Court of Appeals' upholding of a lower court's dismissal of the Loomis vs. Exelon Corp. case must have delighted 401(k) plan sponsors.

For almost 30 years, conventional wisdom has maintained that 401(k) fiduciaries can easily fulfill their duties through a few crucial steps. Unfortunately, conventional wisdom, more often than not, reflects what we wish to believe rather than fact.